Taiwan Semiconductor Manufacturing Co (TPE:2330) has reported a 39% rise in third-quarter profit, beating expectations and setting another record as demand for artificial intelligence processors underpinned sales.
The company posted net income of NT$452.3bn ($15.1bn), up from NT$325.3bn a year earlier, with revenue climbing 30.3% to NT$989.9bn ($33.1bn). Diluted earnings per share reached NT$17.44, compared with NT$12.54 in the third quarter of 2024.
Gross margin expanded to 59.5%, while operating margin improved to 50.6%. Advanced technologies at 7nm or below contributed 74% of wafer revenue, with 3nm alone accounting for 23%.
High-performance computing — spanning AI and 5G applications — was the largest business line, generating 57% of total revenue. Smartphone-related sales made up 30%, while automotive and IoT contributed 5% each.
Chief Executive C.C. Wei said adoption of AI models was accelerating demand for compute power. “Recent developments in AI market continue to be very positive … our conviction in the AI megatrend is strengthening,” he told investors. TSMC lifted its 2025 revenue growth forecast to the mid-30% range, up from about 30% previously, and raised its annual capital expenditure floor to US$40bn.
For the fourth quarter, the company guided revenue between US$32.2bn and US$33.4bn, with gross margin expected in the 59–61% range.
TSMC executives also said they were monitoring potential U.S. tariffs on semiconductors, noting that exemptions were possible. The company continues to invest heavily in U.S. facilities to reduce exposure to trade frictions.
Despite the strong results and raised guidance, shares in TSMC were down 2.36% at NT$1,450.00 in Taipei on Friday afternoon. The stock has gained more than 38% year to date.
